Newark Company Has Provided the Following Information

question 53

Multiple Choice

Newark Company has provided the following information:
Cash sales,$450,000
Credit sales,$1,350,000
Selling and administrative expenses,$330,000
Sales returns and allowances,$90,000
Depreciation expense,$101,000
Gross profit,$1,360,000
Increase in accounts receivable,$55,000
Bad debt expense,$33,000
Sales discounts,$43,000
How much is Newark's gross profit percentage?

• A)75.5%
• B)81.6%
• C)53.7%
• D)83.2%

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Definitions:

Retail Price

The total cost at which a product or service is sold to the end consumer, inclusive of all markups.

US Dollar

The official currency of the United States, widely used as a standard of exchange in international markets.

Euro

The official currency of nineteen of the twenty-seven European Union countries, known collectively as the Eurozone.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.